Cumulative Preferred Financing Shares
Common Shares
22 Pensions and other retirement benefits
Defined benefit plans
00 Ahold ANNUAL REPORT 2002 149
BOARD GOVERNANCE HIGHLIGHTS OPERATING REVIEW FINANCIAL INVESTOR REL AT IONS
In accordance with the Company's Articles of Association, the Corporate Executive Board of Ahold was designated as the
body authorized to issue or grant rights to subscribe for cumulative preferred financing shares of whatever series, subject
to the prior approval of the Supervisory Board of Ahold, up to a total nominal amount equal to 25% of all the outstanding
shares of the capital stock of Ahold, excluding cumulative preferred shares. Cumulative preferred financing shares must be
fully paid-in upon issuance. In accordance with the Articles of Association the Corporate Executive Board of Ahold must
approve any change of ownership of the cumulative preferred financing shares. Ahold cannot be forced to redeem these
shares.
Dividends are paid on each cumulative preferred financing share at a percentage (the "Financing Dividend Percentage")
based on the average effective yield on Dutch state loans with a remaining life of nine to ten years, and such rate has
been fixed for a period of ten years at a rate of 7.37% per fiscal year for the share issuance in June 1996, 5.18% per
fiscal year for the share issuance in August 1998 and 6.47% per fiscal year for the share issuance in October 2000.
Ahold common shares are listed on the Euronext Amsterdam. Ahold has a secondary listing on the Swiss Stock Exchange
in Zurich. Additionally, Ahold common shares are listed on the New York Stock Exchange in the U.S. in the form of
American Depository Shares ("ADSs"), evidenced by American Depository Receipts ("ADRs"). The depositary for the ADSs is
The Bank of New York. Each ADS evidences the right to receive one common share.
Exchange rate differences related with foreign investments and additional charges regarding the minimum pension liability
are non-distributable and are recorded as "other reserves" in shareholders' equity.
Capital accounts ("Garantievermogen") defined as the total of shareholders' equity, minority interest and subordinated
long-term loans, amount to EUR 3,676 and EUR 7,324 as of December 29, 2002 and December 30, 2001, respectively.
December 29, 2002
December 30, 2001
Defined benefit plans
684
519
Defined contribution plans
72
80
Total pensions and other retirement benefits
756
599
In fiscal 2002, Ahold adopted SFAS No. 87 and 106, US GAAP standards, for Dutch GAAP purposes, and adjusted the
numbers and related disclosure for fiscal 2001 and fiscal 2000.
Pensions
Ahold has a number of defined benefit pension plans covering a substantial number of employees within the U.S. and
Europe (including The Netherlands). All plans have been established in accordance with applicable legal requirements,
customs and existing circumstances in each country.
Other benefit plans
Ahold provides life insurance and health care benefits for certain retired employees meeting age and service requirements
at its U.S. subsidiaries. The Company funds these plans as claims are incurred. Health and welfare plans are also stated in
other benefit plans in the following tables below.
The assumed health care cost trend rates used in measuring the accumulated post-retirement benefit obligation is 10.0%,
7.25% and 7.25% in fiscal years 2002, 2001 and 2000, respectively grading down to 5.0% by 2007 and a constant
5.0% for participants over 65 years of age. A 1.0%-point increase in assumed health care cost trend rates would have
increased the aggregate of service and interest cost of 11.2% in fiscal 2002, 7.9% in fiscal 2001, and 8.0% in fiscal
2000. The effect of this change on the accumulated post-retirement benefit obligations as of the end of fiscal 2002,
fiscal 2001, and fiscal 2000 would be an increase of 10.2%, 7.0%, and 6.0%, respectively. A 1.0%-point decrease in
assumed health care cost trend rates would have decreased the aggregate of service and interest cost components of net
periodic retirement health care benefit cost by 9.0% for fiscal 2002, 6.6% in fiscal 2001, and 6% in fiscal 2000.
